When Bitcoin first came, no one was able to guess how widely acceptable cryptocurrency will become. It was just the beginning.
We soon saw new cryptocurrency that solved the problems associated with the 1st generation blockchain cryptocurrency, i.e., Bitcoin. Ethereum and Litecoin followed which improved over its predecessor. However, they were not perfect.
Meet, NEO, a decentralized blockchain platform that is also known as “Ethereum Killer” or “Chinese Ethereum.”
So, what’s so special with NEO? In this article, we will explore the benefits of NEO for the cryptocurrency community.
We will discuss its features and also subtly compared it with other cryptocurrencies out there. However, before we start, let’s learn about NEO briefly.
What is NEO?
NEO is open-source, decentralized blockchain platform and cryptocurrency. It is first of its kind and China launched it.
According to NEO website,
“NEO utilizes blockchain technology and digital identity to digitize assets, to automate the management of digital assets using smart contracts, and to realize a “smart economy” with a distributed network.”
It is a mouthful. However, after reading this article, you will surely understand everything surrounding it. You can also read the ultimate guide on “What is NEO Blockchain?”
So, let’s get started.
Top 5 Benefits of Neo Blockchain Platform
1. Smart Economy
Smart economy is one of the selling points of NEO. It is entirely different from what other cryptocurrencies have to offer, especially Ethereum. The smart economy consists of digital assets, digital identities, and smart contracts.
Image Credits: NEO
By using smart economy, it will be possible to digitize physical assets on the blockchain.
Once digitized, they can stay on the blockchain and enjoy benefits such as decentralized, transparent, trustful, and traceable.
Anyone can register an asset. To make all these possible digital identities is used.
2. Digital Identity
So, what is digital identity?
Digital identity is a way of registering any organization, individuals or other entities that can own an asset. It is powered by a system known as Public Key Infrastructure(PKI).
3. Smart contracts
To enable the whole infrastructure to work developers can use smart contracts. Unlike Ethereum, creating smart contracts on NEO doesn’t require you to learn a new programming language. This means that any developer can get started and build a smart economy on NEO platform.
The ability to use any programming language is done thanks to the NEO’s Universal Lightweight Virtual Machine. It is also known as NeoVM. The virtual machine offered by NEO platform is efficient, certain and scalable.
Image Credits: ndapp.org
GAS is the most beneficial advantage of NEO platform. It can be defined as the NEO’s asset pairing. So, what does that mean? This means that NEO holders will receive GAS. It is a dividend that is paid for holding NEO.
It is distributed according to a formula. If you have NEO in your wallet, you will get GAS every day.
For example, if you hold 100 NEO, you will get 0.03411 Gas per year. Not to mention, the price of GAS have increased over the past few months, making it an excellent incentive for holding NEO.
Great Projects/Partnerships on the platform
A platform can only be successful if it has great projects running on it. And, the good news is that there are plenty of good projects on the NEO platform. All these projects add value to NEO in its way. Let’s list them below.
Image Credits: OnChain
NEO has a deep relationship with OnChain. They have a similar intention when it comes to a solution. In short, NEO works as a foundation stone for DNA(Decentralized Network Architecture) — the OnChain’s system. You can read more about their relationship here.
Image Credits: NEX
NEX is a promising NEO-based project. It is a decentralized exchange and payment solutions on NEO. Its pre-ICO process of registering people has started, and the main sale is slated later this year.
So, what do you think about benefits of NEO? Do you like its ecosystem or what it has to offer? Comment below and let us know.